Brexit Sparks a Full-Blown Business Emergency
Britain has been famously relaxed about foreign ownership of its manufacturers. But Brexit drives a truck through its decades-old approach.
The U.K. hasn't cared much about who owns its companies. Brexit drives a truck through this approach.
Photographer: Steve Parsons/PA Images/Getty ImagesIf Britain’s vote to leave the EU was to have a silver lining, it was the hope that sterling’s slump would spark a long overdue re-balancing of the economy. A vast finance and services sector has brought many advantages over the years (bankers are big spenders and pay plenty of tax), but the cost of neglecting manufacturing is becoming increasingly apparent.
Poor productivity growth, regional inequality, stagnant wages and a yawning current account deficit are just some of the problems made worse by de-industrialization. But while the weaker pound has provided a bit of support for U.K. exports since the 2016 referendum, a manufacturing renaissance – or “March of the Makers” in the words of former finance minister George Osborne – looks like a pipe-dream. Lately, the reverse has been happening.